MNI BRIEF: Real-Estate Still Adjusting - NBS
China's property sector is still adjusting, while demand continues to stall, according to the National Bureau of Statistics.
The property sector remains in the process of adjustment and transformation given January and February data results, Liu Aihua, spokesperson for the National Bureau of Statistics said on Monday.
China’s real-estate investment fell 9% y/y during the first two months of the year following the previous 9.6% decrease, while retail sales decelerated to 5.5% y/y from December's 7.4% gain.
Liu said consumer prices were expected to show a moderate upward trend along with the continued recovery of goods and services, but overall demand in the economy remained insufficient. February’s PMI of 49.1% was mainly down to spring festival impacts and because more employees returned home due to the alleviation of Covid-19 controls.
China’s economy risks missing Beijing’s “around 5%” GDP growth target this year should local governments fail to increase land revenue and meet their increased combined fiscal outlay, an economic policy advisor recently told MNI. (See: MNI INTERVIEW 2: China 5% GDP Growth Depends On Land Revenue)